Income Tax Act 2007 section 257AA

Eligibility for SEIS relief

Section 257AA sets out the conditions that must all be satisfied before an individual investor can claim Seed Enterprise Investment Scheme (SEIS) income tax relief on shares they have subscribed for in a company.

• The investment must satisfy a risk-to-capital condition, confirming there is genuine risk to the investor's money and a genuine growth prospect for the company.
• The shares must actually be issued to the investor, who must have subscribed for them on their own behalf.
• The investor must personally qualify for SEIS relief, and certain general requirements — including the purpose of the share issue and how the money raised will be used — must be met.
• The company issuing the shares must itself be a qualifying company for SEIS purposes.